06-14-02
RTO Online

Bestway announced results today for the quarter ending April 30th.

Bestway Factoids

Closed 8 stores in the last quarter with a net loss of $121,687

Spends 2.4% of revenue on advertising

Salaries and wages account for 26% of revenue

Occupancy expense is 7.2%

On December 1, 2001, and March 14, 2002, the Company further amended the Agreement. In the amendments, the lender decreased the maximum amount of revolving credit under the Agreement from $17,500,000 to $11,500,000, extended the maturity date from September 1, 2002 to October 1, 2003 and modified the required minimum tangible net worth provision and the interest ratio coverage calculation.

The company reported a revenue decrease of $743,876 (8.1%) from the same quarter last year. Bestway attributes this decrease to the closing or selling of 13 stores in the last 12 months, This decrease was partially offset by a $396,854 (5%) increase in same store sales. Bestway attributes this increase in same store sales to 'increased deliveries and an increase in average customers per store'. Details are sketchy.

The company's emphasis on cost control and trimming underperforming stores seems to be having a measurable, albeit marginal, affect on expense levels. Bestway reports an across the board operating expense reduction, as a percentage of revenue, of between .5% and 2%.

Depreciation, as a percentage of revenue, showed the biggest drop (1.8%), while salaries and wages dropped only 0.8% of revenue.

See the 10Q here

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